The Commerce Department surprised analysts as it reported that fourth-quarter GDP actually jumped to a positive showing of 0.2 percent, rather than the expected negative 1.0 percent.

While analysts cautioned that yesterday’s number is only preliminary and could be revised downward as more data comes in, the positive number gave a start to investors.

At 2:15 p.m., Alan Greenspan, Federal Reserve Chairman announced that the economy was beginning to recover and would not be cutting interest rates.

The central bank left its benchmark federal funds interest rate – at 1.75 percent, a 40-year low. Last year Greenspan and the FOMC slashed rates 11 times bringing down rates by 4.75 percent from 6.5 last January.

Although it was widely expected on Wall Street that the two-day meeting of the Fed’s policy making group, Federal Open Market Committee, would call a halt to the reductions – investors came back to pick up stocks battered from weeks of lackluster trading.

Markets stayed depressed during the morning hours but quickly reversed, gaining momentum by the end of the trading day.